TaxTMI 
TaxTMI 
2022 (5) TMI 836
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....to the direction of Ld. Dispute Resolution Panel ('DRP') dated 26.09.2018. 2. The grounds raised by the assessee in the appeal are reproduced as under : "The Appellant appeals against the impugned assessment order dated 30 November 2018 passed by the Deputy Commissioner of Income Tax (L.T.U.) Circle-2 for assessment year 2014-15 under section 143(3) read with section 144C(13) of the Income Tax Act ("the Act). The said appeal is being filed under section 253(1) (d) of the Act on the following amongst other grounds each of which is in the alternative and without prejudice to each other. (1) The learned Deputy Commissioner of Income Tax - (L.T.U.) Circle-2, Mumbai ("the Id. AO") and learned Dispute Resolution Panel-2 ('....
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..... In section 115V-I of the Act, income from operation of the qualified ships is defined as 'relevant shipping income', which consists of profit from 'core activities' and profit from 'incidental activities'. The profit from incidental activities in excess of 0.25% turnover from core activities has been excluded from the relevant shipping income and made liable for taxable under other provisions of the Act. Any other income from non-qualified ships or other business is also to be computed in accordance with other provisions of the Act. 3.1 For the year under consideration, the assessee filed return of income on 26.11.2014 declaring total income of Rs.164,54,14,530/- under normal provisions of the Act and book profit of Rs.255,65,29,795/-.....
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.... in appeal before the Tribuanl raising the ground as reproduced above. 5. Before us, the assessee has filed a Paper Book containing pages 1 to 191. 6. We have heard the rival submissions of the parties on the issue-in-dispute and perused the relevant material on record. As far as Ground No. 1 of the appeal is concerned before us the Ld. counsel of the assessee submitted that issue-in-dispute is covered by the decision of the Tribunal for assessment years 2005-06, 2006-07, 2007-08 and 2009-10. He submitted that according to Ld. DRP its proceedings are in continuation of the assessment proceedings and therefore the Ld. DRP retained the additions/disallowances proposed by the Assessing Officer rather than following the precedent in the c....
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.... the said details. Ground No. 5 of the assessee's appeal for AY 2006-07 is thus partly allowed." 6.2 We find that the Tribunal (supra) has directed to include the income from excess provision written back in the turnover of the core activity of shipping. Regarding reimbursement for managed vessels the matter has been restored back for deciding afresh after verifying the details. The issue-in-dispute before us, being identical to issue in AY 2005-06 & 2006-07, respectfully following the finding of the Tribunal (supra), the Assessing Officer is directed to include the amount of excess provision written back for the purpose of the turnover of the core activity and the issue of inclusion of reimbursement from managed vessels for the purpose ....
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....r the said provision, where tonnage tax company also carries on any business or activity other than the tonnage tax business, then common costs attributable to the tonnage tax business is required to be determined on a reasonable basis. In the present case, the income was earned by the assessee company on account of interest on fixed deposits made out of surplus funds and dividend income earned on investment made in the shares of other company and having regard to all the facts of the case, we are of the view that the same cannot be said to have earned by the assessee by carrying on any separate business activity other than the tonnage tax business as envisaged in section 115 VJ of the Act. The said income was chargeable to tax in the hands....
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....;s own case, we uphold the impugned order of the 1d. CIT(A) confirming the disallowance made by the A.O. on account of assessee's claim for deduction from interest and dividend income on account of common costs attributable to the tonnage tax business as per the provisions of section 115VJ of the Act. Ground No. 3 & 4 of the assessee's appeal for A.Y. 2005-06 are accordingly dismissed." 7.2 The issue-in-dispute before us, being identical to the issue before the Tribunal in AY 2005-06 & 2006-07, respectfully following the finding of the Tribunal (supra), the ground of the appeal of the assessee is accordingly dismissed. 8. In ground No. 3, the assessee is praying for granting credit of Rs.2,25,00,000/- u/s 115JAA for the taxes ....